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Tuesday, June 12, 2012

There are "classic" research papers in all disciplines. As econometricians we frequently find ourselves making reference to publications by authors who are statisticians. Have you ever wondered how the statistical papers that are important to us actually "stack up" when it comes to a more general audience?

Warning! Avoid the so-called "Fixed-Effects Vector Decomposition" (FEVD) estimator, introduced by Plümper and Troeger in a 2007 issue of Political Analysis.

A recent "Symposium on Fixed-Effects Vector Decomposition" in the 2011 volume of that journal, which included critiques by William Greene and by Trevor Breusch et al., reveals just what this estimator is.... and isn't!